Dothan Itinerant Vendor Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain Dothan Itinerant Vendor Bonds
At a Glance:
- Lowest Cost: $100 per year
- Bond Amount: Based on the merchant’s anticipated sales (more on this later)
- Who Needs it: All itinerant vendors and transient merchants operating in Dothan
- Purpose: To ensure the public will receive compensation for any damages should the itinerant vendor violate licensing law
- Who Regulates Video Itinerant Vendors in Dothan: The City of Dothan
Background
Dothan city code 18-216. requires all itinerant vendors operating in the city to obtain a license prior to conducting business. The Dothan city council enacted the licensing laws and regulations to ensure that itinerant vendors engage in ethical business practices. To provide financial security for the enforcement of the licensing law, itinerant vendors must purchase and maintain a surety bond to be eligible for licensure.
What is the Purpose of the Dothan Itinerant Vendor Bond?
Dothan requires itinerant vendors to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the itinerant vendor fails to comply with the regulations set forth in Dothan statutes 18-206 through 18-215. Specifically, the bond protects the public in the event the itinerant vendor engages in any acts of fraud or fails to pay all taxes and fees to the city. In short, the bond is a type of insurance that protects the public if the itinerant vendor breaks licensing laws.
How Can an Insurance Agent Obtain a Dothan Itinerant Vendor Surety Bond?
BondExchange makes obtaining a Dothan Itinerant Vendor surety bond easy. Simply log in to your account and use our keyword search to find the “vendor” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Dothan city code 18-218 dictates that the limit on the itinerant vendor bond must be either 10% of the vendor’s anticipated sales or based on the below table, whichever amount is greater.
| Anticipated Sales | Bond Amount |
|---|---|
| $5,000 or less | $2,500 |
| More than $5,000 but less than $10,000 | $5,000 |
| More than $10,000 but less than $25,000 | $7,500 |
| More than $25,000 but less than $50,000 | $10,000 |
| More than $50,000 but less than $100,000 | $12,500 |
| Over $100,000 | $25,000 |
Is a Credit Check Required for the Dothan Itinerant Vendor Bond?
No, a credit check is not required for the Dothan Itinerant Vendor bond. Because the bond is considered relatively low risk, the same low rate is offered to all itinerant vendors operating in the city, regardless of their credit history.
How Much Does the Dothan Itinerant Vendor Bond Cost?
The Dothan Itinerant Vendor bond costs either $100 or 0.5% of the bond amount, whichever is greater. BondExchange also offers monthly pay-as-you-go options for these bonds.
Who is Required to Purchase a Bond?
Dothan requires all individuals and business entities seeking to obtain a transient merchant business license to purchase a surety bond. Dothan code 18-201 defines a transient merchant as any individual or business who sells goods in the city for a period of no longer than 180 days at a time. Exemptions to this definition include:
- Sales of agricultural produce
- Wholesale sales to licensed businesses
- Situations where licensure for the sale of goods is prohibited under the US constitution
- Sales taking place at art or trade shows
Itinerant vendors must purchase a separate surety bond for each event they participate in.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How do Itinerant Vendors Apply for a License in Dothan?
Itinerant Vendors in Dothan must navigate several steps to secure their license. Below are the general guidelines, but applicants should refer to the application form for details on the process.
License Period – All business licenses expire on December 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Itinerant Vendors must purchase and maintain a surety bond for each event they participate in. See the above section for information regarding the required limits.
Step 2 – Complete the Application
Itinerant vendors must obtain a standard business license and designate their license classification as “itinerant vendor” or “transient merchant”. All Dothan business license applications can be completed online here. Vendors must pay an application fee determined based on their anticipated sales.
How do Itinerant Vendors Renew Their Dothan Business License?
By nature of their business, itinerant vendors typically don’t stay in Dothan for more than half a year. However, if the vendor does wish to renew their Dothan business license then they can do so by following the renewal instructions. All business licenses expire on December 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Dothan Itinerant Vendors?
The city of Dothan does not require itinerant vendors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Itinerant Vendors must purchase and maintain a surety bond for each event they participate in. See the above section for information regarding the required limits.
How Do Dothan Itinerant Vendors File Their Bond?
Itinerant Vendor should mail the completed bond form, including the power of attorney, to the following address:
City of Dothan
P.O. BOX 2128
Dothan, AL 36302
The Itinerant Vendor surety bond requires signatures from both the surety company that issues the bond and from the itinerant vendor. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Date the bond is signed
What Can Dothan Itinerant Vendors Do to Avoid Claims Against Their Bond?
To avoid claims on their bond, itinerant vendors in Dothan must follow all license regulations in the city, including some of the most important issues below that tend to cause claim
- Do not engage in any acts of fraud
- Pay all taxes and fees owed to the city
What Other Insurance Products Can Agents Offer Itinerant Vendors in Dothan?
Dothan does not require itinerant vendors to purchase any form of liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue liability insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Dothan Itinerant Vendor Customers?
Dothan unfortunately does not provide a public database of itinerant vendors operating in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.